Hello, this is Leonie Kidd writing to you from London. Welcome to another edition of CNBC’s Daily Open.
As trading days go, yesterday is up there with the most unusual sessions of my near-20 years at CNBC. President Donald Trump’s Truth Social post about a five-day halt on energy strikes in Iran sent shockwaves through the markets and the newsroom on Monday. The wild swings across asset classes were only exacerbated by denials from Iranian state media that talks had even happened. Indicators that suggest a spike in trading took place ahead of the social media post are now only adding to the confusion.
Going by the ‘morning-after trade,’ it looks like there is a high degree of skepticism over the long-term impact of this proclamation from the U.S. President.
The 600 point rally for the Dow has already begun to fade in Asia. Indices across Asia-Pacific pared gains on Tuesday, while early indicators see European and U.S. stocks opening in the red. That’s mainly down to the fact that oil is once again marching higher, with Brent crossing $100 a barrel on skepticism over de-escalation in the Middle East.
An usual pattern has emerged, with markets appearing to have moved even before Trump’s Truth Social Post signaled a breakthrough in talks with Iran, with the S&P 500 futures and oil futures flashing an unusual burst of activity early Monday, minutes before a market-moving social media post from President Donald Trump. The activity stood out from an otherwise subdued premarket backdrop.
